The continued recovery in global vanilla production, along with improved quality of 2019/20 beans, has brought prices below half their peak, near $600, seen a few seasons ago. Madagascar’s government has set a price floor of $250 kg for its vanilla beans, and the market will be evolving to adjust to this move by the world’s top vanilla origin.
For 2019/20, Madagascar production is seen as strong, above 2,000 MT of beans. Quality is reported up as government policy and market conditions have discouraged early picking, vacuum-packing, and quick-curing, according to some reports.
Other origins have also seen improvements in both output and quality, including Indonesia, Uganda, and Tahiti. Uganda’s government has made moves to better regulate farming, while Indonesia has grown plantings over recent seasons. India’s vanilla crop is still recovering from the spread of fungal disease.
Free Market Overview: “Is Vanilla an Exception to Market Rules?”
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